Tesla’s (NASDAQ:TSLA) Q3 2024 earnings name comes on the heels of the corporate’s Q3 2024 Replace Letter, which was launched after the closing bell on Wednesday, October 23, 2024.
Tesla posted complete revenues of $25.18 billion, with automotive revenues of $20.02 billion in Q3 2024. The corporate additionally posted non-GAAP earnings per share of $0.72 and GAAP EPS of $0.62. Tesla posted $2.7 billion GAAP working revenue within the third quarter, and a document $33.6 billion in money.
The next are stay updates from Tesla’s Q3 2024 earnings name. I can be updating this text in actual time, so please maintain refreshing the web page to view the most recent updates on this story. The primary entry begins on the backside of the web page.
Q3 2024 Earnings Name stay at 4:30pm CT https://t.co/FLyk30QBLk
— Tesla (@Tesla) October 23, 2024
17:38 CDT – And that’s a wrap for Tesla’s Q3 2024 earnings name! Thanks a lot for tuning in. We’ll see you on the following occasion!
17:35 CDT – Adam Jonas from Morgan Stanley asks concerning the relationship between Tesla and xAI. Are the 2 firms working collectively, or are they competing? Elon Musk notes that xAI has been useful to Tesla AI fairly a variety of instances. Musk additionally highlighted that xAI is attempting to make synthetic basic intelligence or superintelligence. Tesla is attempting to make autonomous vehicles.
“Tesla is targeted on real-world AI. It’s fairly totally different from an LLM,” Musk mentioned.
17:27 CDT – Elon Musk admitted that there’s a likelihood HW3 automobiles wouldn’t obtain the required security degree for unsupervised FSD. If this have been to be the case, Musk famous that Tesla would exchange {Hardware} 3 with {Hardware} 4 freed from cost, a minimum of for many who bought FSD.
“There’s some likelihood that HW3 doesn’t obtain a security degree that permits for unsupervised FSD. If that seems to be the case, we are going to improve these two have purchased HW3 FSD without spending a dime,” Musk mentioned.
17:24 CDT – A query concerning the Roadster is requested. Musk admitted that the Roadster’s reservation holders have been struggling for some time. He provides that the Roadster is the cherry on prime of the icing on the cake. He did, nevertheless, state that the Roadster must be behind a number of the firm’s extra prudent merchandise.
17:18 CDT – The entire Tesla Semi which were deployed, round 200 to this point, are geared up with the required gear for FSD. Musk famous that FSD could be an enormous step for security for vans.
One other query is requested about Unsupervised FSD’s deployment in CA subsequent yr. Elon Musk famous that California loves rules, however he could be shocked if Tesla doesn’t get accepted subsequent yr. Corporations like Waymo are in a position to deploy driverless vehicles within the state, in any case.
Musk quipped that there needs to be a federal approval course of for autonomous automobiles. “I feel we must always have this nationwide approval course of for autonomy,” Musk mentioned.
17:13 CDT – One other query is requested concerning the Tesla Semi. Tesla executives famous that the power is on observe to begin preliminary builds subsequent yr, with manufacturing ramping full blast in 2026. Musk famous that there’s “ridiculous demand” for the Semi contemplating the car’s extraordinarily low value per mile.
Tesla executives famous that the Semi’s potential is already being confirmed by purchasers like PepsiCo. PepsiCo’s drivers don’t wish to drive another truck as soon as they check out the Semi.
17:09 CDT – Musk highlighted that the Cybercab is technically a $25,000 automotive, however it’s an autonomous automotive, not manually pushed.
One other query is requested about assuaging wait instances at service facilities. Firm executives highlighted that Tesla continues to be targeted on making automobiles that require as little service as attainable.
Tesla, nevertheless, is developing with a system that’s impressed by a manufacturing unit, the place there are totally different lanes which can be devoted to several types of repairs. Automation can also be an enormous precedence.
17:05 CDT – Elon Musk highlighted that the Cybercab doesn’t simply function revolutionary design. It additionally options revolutionary manufacturing. “It’s simply actually one thing particular,” Musk mentioned.
17:03 CDT – Investor questions start! First query is concerning the extra inexpensive automotive. Tesla executives reiterated that plans are underway to supply extra inexpensive vehicles within the first half of subsequent yr. This, nevertheless, possible entails decreasing the price of present automobiles.
As for the $25,000 non-Robotaxi automotive, executives highlighted that Tesla is all in on autonomy. So there are not any plans to supply a non-autonomous model of the Cybercab.
17:00 CDT – The CFO highlighted Tesla Vitality’s margins, which handed 30% in Q3. This was as a result of a mixture of tasks in the course of the quarter. He additionally famous that Tesla Vitality is already filling in its 2024 manufacturing slots.
Tesla’s working bills declined quarter over quarter and yr over yr, partly because of the firm’s restructuring, which occurred in Q2.
16:58 CDT – Tesla’s CFO takes the stage. He famous that Tesla’s automotive revenues grew quarter over quarter and yr over yr. Tesla’s gross sales grew regardless of ASPs dropping.
He notes that Tesla is set to develop unit quantity whereas avoiding a buildup of stock. To help this technique, Tesla is rolling out compelling financing choices that make its automobiles extra attainable to customers.
Automotive margins improved quarter over quarter as properly. The chief additionally highlighted that Tesla is targeted on the price per car, and there are quite a few work streams inside the firm to squeeze that value with out compromising on buyer expertise.
16:53 CDT – Elon Musk famous that progress is being made within the Optimus program. He talked about Optimus’ next-generation hand, which options 22 levels of freedom.
“I really feel assured saying that now we have probably the most superior humanoid robotic by an extended shot,” Musk mentioned, including that rival robots are lacking the AI mind, if not the flexibility to supply the robots at very excessive volumes. Tesla has each, so the corporate’s potential to guide the sector is notable.
““I feel Optimus would be the most respected a part of Tesla,” Musk mentioned.
Musk additionally mentioned Tesla Vitality, notably its Megafactories. He famous that Lathrop is ramped, and Shanghai is progressing properly. “It received’t be lengthy earlier than we’re sipping 100 GWh a yr of stationary storage at Tesla,” Musk mentioned. Musk famous that Tesla wants its power enterprise to scale so the corporate can transfer the needle within the power sector.
16:48 CDT – Elon Musk reiterated Tesla’s goal of rolling out a ride-hailing service subsequent yr in California and Texas subsequent yr relying on regulatory approval.
He additionally famous that Tesla is now not coaching compute-constrained. “The FSD is definitely getting so good that it takes us some time to seek out errors. It takes lots to determine if Software program A is best than Software program B, since neither considered one of them are making errors,” Musk mentioned.
16:46 CDT – Musk famous that Tesla’s inner estimate is that FSD could be safer than a human driver by Q2 subsequent yr.
“There’s no want to attend for the Robotaxi or the Cybercab to expertise full autonomy. We anticipate to attain that subsequent yr, with our present car line,” Musk mentioned. He additionally famous that Tesla staff within the Bay Space now have an autonomous ride-hailing service. The service nonetheless makes use of security drivers, although.
16:41 CDT – This doesn’t imply to say that Tesla is not going to be counting on battery suppliers, after all. The expansion of Tesla Vitality and the corporate’s different companies requires a whole lot of suppliers.
Musk additionally mentioned the progress of FSD, equivalent to the discharge of V12.5 and the Cybertruck’s FSD, in addition to Precise Sensible Summon (A.S.S.). He notes that FSD V13 is predicted to be rolled out quickly. V13 is predicted to see 5-6x enchancment in miles between interventions.
16:38 CDT – Musk famous that Tesla continues to be on observe to ship extra inexpensive automobiles beginning within the first half of 2025. “I do wish to give some tough estimate, which is, I feel, 20-30% development subsequent yr,” Musk mentioned. He additionally famous that he’s “assured of Cybercab reaching quantity manufacturing in 2026.” Tesla is estimating a manufacturing of two million Cybercabs per yr.
Musk said that the 4680 strains are doing properly. Tesla’s 4680 is quickly approaching the purpose the place it os probably the most aggressive cell out there. “I feel if we execute properly, Tesla’s internally produced cell would be the most cost-competitive cell in North America,” Musk mentioned.
16:35 CDT – Elon Musk makes his opening remarks. He offers a fast recap of Q3. He notes that Tesla achieved document deliveries at a time when your entire trade is challenged. “It’s notable that Tesla is worthwhile regardless of a really difficult automotive setting,” Musk mentioned, highlighting that this quarter is a document Q3 for the corporate.
He notes that Tesla produced its 7 millionth automotive yesterday. He congratulates the Tesla staff for pulling the feat off. Musk additionally said that Tesla Vitality is doing properly. He additionally states that the “Tesla staff did an exceptional job” in the course of the “We, Robotic” occasion.
16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings name. Elon Musk and a variety of executives are current.
Let’s go!
16:29 CDT – One minute to go! Let’s see if this name begins on time.
16:28 CDT – Tesla bull Gary Black of The Future Fund summarized the Q3 earnings outcomes fairly properly. It’s a beat.
$TSLA beat solidly on 3Q adj eps ($.72 vs $.60 est and vs my $.56 est). TSLA +9.4% AH. Driving the beat:
– Auto GM ex-reg credit was 17.1% vs 14.9% WS est.
– Vitality earnings soared +90% (power GM 30.5% vs 24.4% YoY)
– Service earnings soared +91% (companies GM 8.8% vs 6.0% YoY)…— Gary Black (@garyblack00) October 23, 2024
16:25 CDT – It’s 5 minutes earlier than the earnings name and there’s nonetheless no music. Oh, boy, I hope they begin this one on time. No motive to be late anyway, because the Q3 outcomes have been extraordinarily spectacular. TSLA inventory after hours is up 9.44% as of writing.
Aaand there’s Tesla’s techno music. We’re shut, everybody.
16:15 CDT – Whats up, everybody, and welcome to our stay weblog of Tesla’s third quarter 2024 earnings name. Tesla’s Q3 outcomes are the very best we’ve seen in a very long time, so this upcoming earnings name will in all probability be fairly memorable. Particularly spectacular was the truth that the Cybertruck reached constructive gross margin within the third quarter. That’s fairly nuts!
Right here’s the livestream of Tesla’s Q3 2024 earnings name.
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